According to Cointelegraph, finance ministers from European Union member states have reached an agreement on setting limits for individual holdings of the digital euro, marking a significant step towards the potential launch of a central bank digital currency (CBDC) in the region. This decision was announced during a Eurogroup press conference following the Economic and Financial Affairs Council meeting held in Copenhagen, Denmark. Officials confirmed that a consensus was achieved regarding the ceiling for holding limits and the issuance process for the digital euro.
During the press conference, it was clarified that the discussions focused on the procedures for establishing these holding limits rather than the specific limits themselves. This development comes amid calls from UK-based cryptocurrency advocacy groups urging their central bank to reconsider similar restrictions on stablecoin holdings. The European Central Bank (ECB) had previously addressed the issue of holding limits in its progress report on the digital euro, released at the end of 2024. The report highlighted ongoing debates between the ECB and national central banks over these limits.
Despite a global trend towards stablecoins, the European Union is intensifying its efforts to introduce a digital euro. Earlier this month, the ECB renewed its push for the digital currency, facing resistance from some EU members concerned about privacy and potential impacts on commercial banks. ECB board member Piero Cipollone assured that the system would allow all Europeans to make payments with a universally accepted digital means, even during major disruptions. He emphasized that the bank would not have access to information about the payer and payee, and the digital euro would function offline, preserving privacy akin to cash.
The ECB has been exploring the digital euro for years, potentially influenced by stablecoin regulations advocated by the Trump administration in the United States. In late July, ECB adviser Jürgen Schaaf proposed the digital euro as a strategic response to the growing prominence of dollar-based stablecoins. Similarly, Fabio Panetta, a former ECB official and Governor of the Bank of Italy, suggested in May that the digital euro could mitigate risks associated with the increasing adoption of cryptocurrencies. He argued that relying solely on rules and restrictions would be insufficient to manage the evolution of crypto-assets, positioning the digital euro as a crucial tool in addressing these challenges.